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Ethernet Characteristics re: packet loss

I have a quick question.... someone made a statement that it is a
characteristic that once you go above 40% LAN capability, the you will begin
to lose packets.  This doesn't seem to hold water with me.  I recently
performed a test whereby we injected packets at 100%, 75%, 50%, 25% 10% & 5%
network capability.  We had 2 laptops, 1 desktop (PIII dual processor), a
LAN Analyzer, and a SmartBits 200 generator -- at 100% both the laptops 40%
of the packets we were sending -- the desktop captured 70% --- in both cases
the application running on the platforms was using 100% of the processing
time. -- my suspicion is that this is where the packets are being loss -- in
the processing arena.

Can you shed any light on this?

Thank you,

Tony Stout
Information Systems Test Director

Phone:  301-744-2690
Mobile: (301) 399-9078
Fax:  301-744-2688

JITC Webpage:

 <<Tony Stout (E-mail).vcf>> 

Tony Stout (E-mail).vcf